House prices badly hit by Heathrow runway plan

PLANS for a third Heathrow runway have had a severe effect on house prices in the area, figures reveal today.

Asking prices in the borough of Hounslow, which contains most of the homes worst affected by the Government's expansion, have dropped by 14.1 per cent in the past year, compared with 1.8 per cent across the capital, price monitor Rightmove found.

In Hillingdon, where the new runway will actually be built, average asking prices fell by 6.7 per cent.

Experts today said the airport plans had been a major factor in depressing values in the west London boroughs.

Miles Shipside of Rightmove said: "It remains to be seen whether the positive effect of thousands of extra jobs outweighs negative impacts that inevitably come with such an expansion."

Elsewhere in London, today's figures show that home owners' expectation that they will have to accept offers well below what they want has resulted in a substantial jump in asking prices over the last month.

The £11,321 average increase means that asking prices are only £7,500 below their level a year ago, or 1.8 per cent, in contrast with actual sale prices which have fallen by well over 10 per cent.

Mr Shipside said: "Most prospective spring sellers are being deterred by the problems in the current market.

"There is evidence of buyers looking to offer 25 per cent below last year's peak prices and this level of discount is likely to be a major factor preventing many aspiring sellers from coming to market."